CEO Compensations a Cause for Concern: Korn/Ferry Survey

CEO Compensations a Cause for Concern: Korn/Ferry Survey
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First Published: Wed, Apr 16 2008. 05 12 PM IST
Updated: Wed, Apr 16 2008. 05 12 PM IST
New Delhi: Amidst recent calls for fair pay, more than one-third of executives (34%) expressed at least some concern regarding their CEO’s compensation, according to the latest Executive Quiz from Korn/Ferry International, a premier global provider of talent management solutions. In contrast, a 2007 Korn/Ferry survey of executives revealed that approximately one-fifth (21%) felt their CEO was overcompensated.
Additionally, four out of five executives (80%) indicated that shareholders should have at least some “say on pay” for their company’s executives. Shareholders today are witnessing an ongoing disparity between rising CEO compensation and declining share prices.
“The tumultuous economic environment highlights the challenges with getting pay for performance right,” said Russell Miller, managing director of Korn/Ferry’s Executive Compensation Advisors. “The business community continues to focus on aligning pay and performance, and companies are having mixed success against this objective.”
When asked if they felt their CEO’s compensation directly reflects company performance, more than half (55%) of respondents indicated that it does not reflect or is only “somewhat” reflective of the organization’s results. Another 42% said their CEO’s compensation was in line with company performance.
The Korn/Ferry International Executive Quiz is based on a global survey of executives registered within the firm’s online Executive Center, ekornferry.com. Respondents from more than 50 countries, across industry sectors participated in the quiz in March 2008.
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First Published: Wed, Apr 16 2008. 05 12 PM IST